PricewaterhouseCoopers Israel report shows that 50 buy-out deals for Israeli high-tech start-ups in 2012 averaged $111 million in size, an all-time high • Figures reflect a maturing Israeli market, in which there are fewer, but larger, exit deals.

Hezi Sternlicht and Israel Hayom Staff

Israeli hi-tech startups were sold for on average $111 million in 2012.

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Photo credit: Moshe Shai

Israeli high-tech start-up companies were bought out for a total of $5.5 billion in 2012, according to a report published by PricewaterhouseCoopers Israel.

The report showed that the 50 buy-out deals for Israeli high-tech start-ups in 2012 averaged $111 million in size, an all-time high.

In 2006, Israeli high-tech start-ups were acquired for a record $10 billion, but the average total per deal was smaller than in 2012, showing that buy-out deals have become fewer, but larger, in the Israeli high-tech sector in recent years.

Rubi Suliman, the head of PwC's high-tech practice, was quoted by The Wall Street Journal as saying that the 2012 numbers reflected a maturing Israeli market.

“There is a long discussion about whether exits are good for Israel or should we build larger multinational companies,” Suliman was quoted as saying.

“Recently, we are seeing Israeli companies grow, and become world leaders in their areas. We are seeing companies with revenues of over $100 million. We did not see these in the past. They were being sold much earlier, often pre-revenue.”